No Christie, No Bargain
By THOMAS L. FRIEDMAN
NYT
Gov. Chris Christie of New Jersey isn’t going to run. That’s too bad. He had a chance to rescue the Republican Party from its dash to the cliff and make President Obama a better leader, too.
Here’s why: When the G.O.P. presidential candidates were asked during their debate on Aug. 11 whether any of them would accept a budget deal that involved $10 in spending cuts for every $1 in tax increases — and they all said no — the Republican Party officially became a danger to itself and to the country.
The G.O.P. became a danger to the country because it announced, in effect, that it would not be a partner for the kind of Grand Bargain that many economists believe we need — something that provides more near-term investment in the economy that spurs job growth, combined with a credible long-term plan to increase tax revenues and trim entitlements so the country’s debt-to-G.D.P. ratio stays in a safe range. Such a Grand Bargain would simultaneously boost the economy and optimism by its economic logic and the mere fact of the two parties working together.
The G.O.P. became a danger to itself because, as Tyler Cowen, an economics professor at George Mason University, pointed out in this newspaper on Sunday: “Cutting $10 in spending for every $1 in tax increases would result in $9 in net tax reduction. That’s because lower spending today means lower taxes tomorrow, and limiting the future path of government spending does limit future taxes, as Milton Friedman, the late Nobel laureate and conservative icon, so clearly explained. Promising never to raise taxes, without reaching a deal on spending, really means a high and rising commitment to future taxes.”
(More here.)
NYT
Gov. Chris Christie of New Jersey isn’t going to run. That’s too bad. He had a chance to rescue the Republican Party from its dash to the cliff and make President Obama a better leader, too.
Here’s why: When the G.O.P. presidential candidates were asked during their debate on Aug. 11 whether any of them would accept a budget deal that involved $10 in spending cuts for every $1 in tax increases — and they all said no — the Republican Party officially became a danger to itself and to the country.
The G.O.P. became a danger to the country because it announced, in effect, that it would not be a partner for the kind of Grand Bargain that many economists believe we need — something that provides more near-term investment in the economy that spurs job growth, combined with a credible long-term plan to increase tax revenues and trim entitlements so the country’s debt-to-G.D.P. ratio stays in a safe range. Such a Grand Bargain would simultaneously boost the economy and optimism by its economic logic and the mere fact of the two parties working together.
The G.O.P. became a danger to itself because, as Tyler Cowen, an economics professor at George Mason University, pointed out in this newspaper on Sunday: “Cutting $10 in spending for every $1 in tax increases would result in $9 in net tax reduction. That’s because lower spending today means lower taxes tomorrow, and limiting the future path of government spending does limit future taxes, as Milton Friedman, the late Nobel laureate and conservative icon, so clearly explained. Promising never to raise taxes, without reaching a deal on spending, really means a high and rising commitment to future taxes.”
(More here.)
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